Higher rates continue to make up for lower occupancies across the U.S. hotel industry, pushing weekly room revenue higher than it was in 2019, but not high enough to negate the effects of inflation. Data from STR show U.S. hotel industry occupancy for the week ended April 23 rebounded from the … [Read more...] about 4.23.22: HIGHER RATES DRIVE U.S. HOTEL ROOM REVENUES ABOVE 2019 LEVELS
In a former historic Ames & Brownley department store in downtown Norfolk, Virginia, a local company is sewing together a tapestry of complementary tenants -- creative companies, tech startups and freelancers -- in one building ecosystem. The 50,000-square-foot multi-tenant office campus, … [Read more...] about 4.10.22: CENTURY-OLD DEPARTMENT STORE CONVERTED INTO CREATIVE OFFICE HUB
An inverted yield curve is an important economic indicator and is often a precursor to a recession. Normally, long-term interest rates are higher than short-term interest rates so a graphical plot of yields from Treasury bonds of different durations normally slopes up. One often-used graphic is the … [Read more...] about 4.1.22: YIELD CURVE INVERTS – WILL IT PREDICT A RECESSION?
ValueXpress helped many of its clients obtain first- and second-draw Paycheck Protection Program (PPP) loans. These loans were a lifesaver in many instances. Now that business is returning to normal, getting these loans officially forgiven has taken a back seat for many borrowers. But if borrowers … [Read more...] about 3.17.22: DON’T FORGET — PPP LOAN FORGIVENESS IS NOT AUTOMATIC; YOU MUST APPLY
Data processing firm Celonis extended its existing lease at 1 World Trade Center by signing for an additional 40,763 square feet on the 70th floor, according to The Durst Organization and The Port Authority of New York and New Jersey (PANYNJ). The deal brings 1 World Trade Center to 95% leased, 2 … [Read more...] about 3.8.22: 1 WORLD TRADE CENTER 95% LEASED WITH LATEST DEAL: DURST
Spreads on CMBS securities have widened after Russia invaded Ukraine on February 24. Market participants are hopeful the widening is temporary, but a prolonged war and associated economic impact could extend the recovery period for spreads. Prior to the war, spreads were already leaking wider on the … [Read more...] about 2.28.22: RUSSIA INVASION AFFECTING CMBS MARKET
ValueXpress has now completed over 200 CMBS conduit loans for hotels. We have financed every hotel brand in the United States! The most popular brands for refinance for us are Holiday Inn Express and Hampton Inn. Many of our hotel clients use the “cash-out” feature of CMBS conduit loans to finance … [Read more...] about 2.16.22: HOTELIERS, WATCH YOUR ALIGNMENT!
The amount of loans backed by hotels and packaged into commercial mortgage-backed securities, or CMBS, typically moves with the economic cycle. In the recessions of 2002 and 2009, issuance of hotel CMBS loans declined to almost zero, but in 2020 more than $3.5 billion in CMBS loans were made. In … [Read more...] about 2.7.22: COSTAR: HOTEL CMBS LOANS POISED FOR STRONG RECOVERY
In July 2018, we posted that finance professionals agreed that the Secured Overnight Financing Rate, or SOFR, would be the likely replacement for LIBOR by the end of 2021, when the LIBOR index was scheduled to be phased out. The SOFR is a broad measure of the cost of borrowing cash overnight … [Read more...] about 1.31.22: SOFR IS HERE FOR CMBS CONDUIT LOANS – WHAT DOES IT MEAN?
LW Hotel Advisors (LWHA) recently released its fourth-quarter U.S. lodging market update. According to Daniel Lesser, President and CEO, vaccines and booster shots paved the way for a brief return to some semblance of normalcy; however, as we enter 2022 the nearly two-year global health crisis is … [Read more...] about 1.17.22: Q4 2021 U.S. LODGING MARKET UPDATE FROM LW HOTEL ADVISORS